Willingness to pay for differently produced food in Croatia. Effects of quality claims on willingness to pay for organic food.Evidence from Experimental Auctions in Croatia (CROSBI ID 407224)
Ocjenski rad | doktorska disertacija
Podaci o odgovornosti
Čagalj, Marin
Haas, Rainer (BOKU ; Austrija) ; Elda Vitanović (Institut za jadranske kulture i melioraciju krša)
engleski
Willingness to pay for differently produced food in Croatia. Effects of quality claims on willingness to pay for organic food.Evidence from Experimental Auctions in Croatia
The EU has strictly regulated labeling of organic food and claims about credence attributes. The organic market of the new EU member Croatia is less developed than in other EU countries and there is limited knowledge about the valuation of organic food by consumers. This research uses an experimental auction (BDM mechanism) to analyze how organic production and claims about credence attributes "environmental impacts", "health" and "taste" influences the consumer’s valuation of organic apples and tomatoes. Data are gathered from four different places (grocery store, local market of fresh fruits and vegetables, supermarkets and universities). For our sample we find that consumers are willing to pay on average a premium of 42% for organic apples and 59% for organic tomatoes. We find claims about reduced environmental impact ; health and better taste do further increase the willingness to pay for organic products by an additional 4% to 20% on top of the willingness to pay for organic products. The willingness to pay for conventional food is either not or only slightly reduced by these claims about credence attributes, contingent on information about organic production. Since objective claims about credence attributes are inherently difficult, we suggest that organic producers in emerging markets first gain consumer trust through establishing organic labels and only later add claims.
Organic Labeling ; Croatia ; Claims ; Experimental Auctions ; Credence attributes
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07.09.2016.
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